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Analyzing Success Factors in Binary and Hybrid MLM Plans

Analyzing Success Factors in Binary and Hybrid MLM Plans

Published 10 months ago
Description

In direct selling the two common compensation plans are a binary compensation plan and a hybrid compensation plan. Lets know the difference of these two models in certain aspects: 


Structure: 

Binary: It is a simple two-leg model one leg placed left and other one in right. swhere  The two legs must eventually be in balance with each other. 

Hybrid: It has a  flexible structure combining two or more compensation plans. This may have more than one compensation plan and also multiple earning paths. 


Ease of Implementation 

Binary: Easier to implement because of its simple structure  

Hybrid: More complicated to set up because of combining various plans 


Payout Structure 

Binary: Payout is based on the weaker leg performance for maintaining and encouraging balanced growth.  

Hybrid: Payout varies depending on the combination of plans. Includes direct bonuses, matching bonuses, team commissions, etc. 


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